RIYADH: Saudi Arabia experienced a subtle shift in its inflation rate in November, reaching 1.7 percent, slightly higher than the 1.6 percent recorded in October, according to official data.
The latest report from the General Authority for Statistics revealed that the marginal increase in inflation was propelled by the prices of housing, water, electricity, gas, and other fuels, which rose by 1.3 percent in November compared to the previous month.
“Prices for rents were the main driver of the inflation rate in November 2023 due to their high relative importance in the Saudi consumer basket with a weight of 21 percent,” stated GASTAT in the report.
In comparison to October, expenses for restaurants and hotels increased by 0.6 percent in November, while prices for personal goods and services saw a 0.2 percent increase.
GASTAT added that expenses for transport witnessed a decline of 0.6 percent in November compared to the previous month.
Prices of food and beverages dropped by 0.1 percent month-on-month in November, while furnishings, household equipment and maintenance expenses slipped by 0.5 percent in the same period, according to the report.
However, Saudi Arabia’s overall inflation rate increased by 1.7 percent in November compared to the same month of the previous year.
The annual rise in inflation was attributed to housing rental costs, which soared by 9.4 percent in November.
In comparison to November 2022, food and beverage prices in November of this year increased by 1.4 percent, while expenses for restaurants and hotels rose by 2.3 percent.
Expenses for furnishings, household equipment and maintenance prices decreased by 2.9 percent year-on-year in November, GASTAT added in the report.
November also witnessed clothing and footwear prices drop by 4.1 percent compared to the same period of the previous year.
Saudi Arabia’s resilience in controlling the inflation rate aligns with the predictions made by the International Monetary Fund. Earlier in June, the IMF had projected that the inflation rate in the Kingdom would average 2.8 percent in 2023 amid global economic headwinds.
Meanwhile, a separate study noted that GASTAT Saudi Arabia’s Wholesale Price Index increased by 2.4 percent in November compared to the year-ago period.
The authority attributed the rise in WPI to an increase in prices of basic chemicals, which soared by 23.8 percent.
The report added that WPI increased in November by 1.2 percent compared to the previous month as a result of the increase in the prices of other transportable goods, which rose by 2.9 percent.
